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5.
Mention: power generation (additional to Guangdong
coal mining; aerospace;
nuclear); offshore oil; projects if time allows.
other
6.
Investment Promotion and Protection Agreement being
negotiated. Will help strengthen economic links.
7.
Defensive Points:
a) COCOM: Note wish for China's removal from strategic export controls. Changes require agreement of all COCOM members. HMG tries to ensure rapid processing of
applications for China.
b) GATT: Any Chinese proposal for full membership will be carefully considered by European Community and GATT as
a whole.
c) Import Quotas: Decided by EC.
Need to restrict certain
products (eg textiles, shoes, pottery, TV sets) to preserve
UK industry.
d) Aid/soft credit: Understand wish for attractive financial packages. Constraints on UK aid programme make it difficult to offer bilateral soft credit at present. But UK Contributes to international lending agencies eg World Bank, which lend
to China.
C. INTERNATIONAL ISSUES
East/West Relations
1. Account of Gorbachev visit to UK.
Sino-Soviet Relations
Objectives for Arkhipov visit to China? How far can economic cooperation develop without progress on political
2.
issues?
/Indo-China
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